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Competition

To be successful in the world of intense business competition a company needs to be highly competitive to stay ahead of its competitors using the correct strategy to achieve above average performance.

There are 3 main strategies to achieve competitive advantages and to compete successfully with the rivals.

The first strategy is cost leadership or production of many cheap goods. Following this strategy a company sets out to become low-cost producer in its industry. The company has a broad scope (with range) of products and serves many industry segments. The source of cost advantage may include the pursuit of economist of scale, technologies, preferential access to raw materials and other factors.

The second strategy is a differentiation:

In this strategy, a company seeks to be a unique in this industry. Perceive consumers that its products have special qualities. It selects one or more attributes that buyers widely value and tries to meet those needs in a best possible ways. The reward for it uniqueness is a high price.

The means for differentiation are peculiar (special) to each industry.

Differentiation can be based on the product itself, the delivery system, the marketing approach, and a broad range of other factors. In construction equipment differentiation is based on product durability, service, spare parts availability, and an excellent dealer network.

The third strategy is focus. This strategy is based on the choice of a narrow competitive scope within an industry or market selection of segment in it and serving them to the exclusion of others. The focuser does better than its rivals in a small part of a market. The focuser optimizes its strategy for a target segment in the market and achieves a competitive advantages in any strategy is stuck in the middle and has below-average performance.

To be successful in a heavy competition (like Coca-Cola) a company must:

1. Understand its actual opportunities

2. It needs a portfolio products which include the best brands and the most recognizable packages

3. It needs to be supported by excellent market attention to detail.

4. It needs an efficient manufacturing and distribution operation

5. TV, advertising

In summery, the way to stay ahead of its rivals which is focus on a delivery to the consumers a product. That adds value to their lives (Coca-Cola)

As a rule competition leads to better products and better prices for customers. In affects the way companies operate in the future. For company’s is important to keep improving their core offerings. They are product portfolio. They are packages. They are operational efficiency.

Its prepare to the needs of their future consumers.